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Housing stocks helped by Redrow's rosy numbers

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Housing stocks were hanging onto gains midway through Wednesday’s session after record half-year results from Redrow (LON:RDW).

Wales's biggest house builder delivered a bumper set of numbers, easing fears of a slowdown in the UK property market.

Revenues climbed 54% to a half year record of £560mln in the six months to 31 December, driven by a 14% rise in the average house sale price to £300,000.

Meanwhile, continuing low interest rates and stamp duty changes helped pre-tax profits soar to £91.2mln, up 92%.

The figures meant the likes of Persimmon (LON:PSN) and Barratt Developments (LON:BDEV) headed higher, up 2.7% and 1.7% respectively.

Redrow chairman Steve Morgan said demand for new homes is strong and the firm has started its second half with a very strong order book.

Bellway (LON:BWY) boss Ted Ayres warned on Tuesday that the rate of price growth has moderated although he said the average sale price of a Bellway home increased by 3% to £219,000 in the six months to 31 January.

Redrow shares climbed 12% to 331p.

Quick facts: Redrow PLC

Price: 425.1275 GBX

LSE:RDW
Market: LSE
Market Cap: £1.5 billion
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